A. Bad Boys, Inc. is evaluating its cost of capital. Under c

A. Bad Boys, Inc. is evaluating its cost of capital. Under c.
A. Bad Boys, Inc. is evaluating its cost of capital. Under consultation, BadBoys, Inc. expects to issue new debt at par with a coupon rate of 8% and toissue new preferred stock with a $2.50 per share dividend at $25 a share. Thecommon stock of Bad Boys, Inc. is currently selling for $20.00 a share. BadBoys, Inc. expects to pay a dividend of $1.50 per share next year. An equityanalyst foresees a growth in dividends at a rate of 5% per year. Bad Boys, Inc.marginal tax rate is 35%. If Bad Boys, Inc. raises capital using 45% debt, 5%preferred stock, and 50% common stock, what is Bad Boys cost of capital?B. If Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and65% common stock, what is Bad Boys cost of capital?C. On page 457, your textbook details the term Cannibalization. In your ownwords, identify two corporations that have dealt with cannibalization and whatsteps were taken to overcome the cannibalization. Please provide any citationsand references. Please be articulate in your responses
A. Bad Boys, Inc. is evaluating its cost of capital. Under c